The central government is going to give great news to its more than one crore employees and pensioners before Holi. Dearness Allowance (DA) can be increased by four percentage points from the existing 38 percent to 42 percent.
A formula has been agreed upon for this purpose. Although it has not been announced yet. Dearness Allowance for employees and pensioners is calculated on the basis of the Consumer Price Index for Industrial Workers (CPI-IW) released by the Labor Bureau every month. The Labor Bureau is a part of the Ministry of Labor.
Dearness Allowance may increase to 42 percent
Shiv Gopal Mishra, general secretary of the All India Railwaymen’s Federation, said the CPI-IW for December 2022 was released on January 31, 2023. The increase in dearness allowance works out to 4.23 percent. But the government does not take decimals into DA. In such a situation, there can be an increase of four percentage points in DA.
It can be increased from 38 percent to 42 percent. He told that the Expenditure Department of the Finance Ministry will make a proposal to increase DA. In this, its revenue effect will also be told. This proposal will be placed before the Union Cabinet for approval. The increase in dearness allowance will be applicable from January 1, 2023.
